2055 Exterior Only

[Dan Leggett]

Originally posted by George Hatch@Jun 7 2005, 10:19 AM
...
Since we don't see the interior, we are assuming the interior quality and condition is consistent with what we see on the outside...

FWIW - I also add "and of the sales utilized in the Sales Comparison Analysis."

 

[Pamela Crowley (Florida)]

"Measurements and a complete interior and close exterior observation of the subject dwelling could impact the Appraiser's Opinions."

 

[Randy Beigh]

Question and I have no idea what the answer is.

Has anybody ever been sued, turned into the state, had their license lifted, or otherwise been held accountable for a driveby appraisal? What is the real life experiences with these?

Speaking only for myself, I worked for a company that did about 300-350 drivebys a month for 5 years and no one was ever held accoutable. I have done drivebys in this business and no one has ever held us accountable.

Change that slightly. There was a guy in Phoenix that the company sued for appraising the wrong commercial property.

 

[Don Clark]

B) The new Fammie Mae form 2055 is an EXTERIOR only form. Look at the scope of work on that form. That would be your best guide. Nothing wrong with doing such an appraisal. You can also do a desk top only appraisal and never see the subject or comparables, fully USPAP compliant as long as you disclose wht you did or did not do, and develop an appropriate scope of work to go with it.

There is no requirement in USPAP that you inspect either the subject or the comparables, from the street, interior, or otherwise.

Mike,

I am surprised at your statement

 

[nauthead]

I put this statement in every drive-by I do. It's virtually word for word from USPAP.
The appraiser has been requested to perform a drive-by appraisal and not to disturb the occupants by entering the building. The physical characteristics used to develop this appraisal are based on the assessment records from the subject's county. The subject was observed from the street as of the effective date of the appraisal. On the basis of the observed conditions, the assessment records appear to be accurate. For the purposes of this report, the appraiser has made the extraordinary assumption that the interior condition of the subject is consistent with the exterior conditions as observed and that the information concerning the interior condition as provided by the assessor's records is accurate. If an interior inspection should indicate otherwise, then the appraisal may require modification.

 

[Richard Carlsen]

Put something like this in the report:

"At the specific request of the client, because the client considered the borrower too cheap to pay for a real appraisal where the appraiser could go inside and see what is being hidden from the appraisers view, the appraiser only observed the exterior of the subject property. Since only the exterior of the property was observed, no contributory value is given for the interior. Only the observable exterior and the site value are considered in the report."


Bet that would get someone’s opinion quick.

When we now do a 2055 exterior, the order is taken only on the basis that the appraiser reserves the right to change the order to a 1004 if in the appraiser's judgment, the information available on the interior is in question or if the condition of the interior is in question. Fee to be adjusted accordingly.

 

[Verne Hebert]

I don't do them unless no access is possible; normally this would be due to a hostile occupant for preforeclosure or divorce.

If I did, I would recommend both asbestos underwear, and a jock strap with pitchers cup in the event the anterior was exposed rather than the posterior.

Good Luck.

 

[Indiana Jones]

"At the specific request of the client, because the client considered the borrower too cheap to pay for a real appraisal where the appraiser could go inside and see what is being hidden from the appraisers view, the appraiser only observed the exterior of the subject property. Since only the exterior of the property was observed, no contributory value is given for the interior. Only the observable exterior and the site value are considered in the report."

:rofl:
I like that.
I'm comfortable with this one though, purchase in a cookie cutter neighborhood, very tight grid.

Mike,

I am surprised at your statement

Which one?

 

[Verne Hebert]

I am gettin out of here for the day. But I want to respond to Randy's reply real quick.

I did 3 in 1996 in a period of 4 months or so. The purpose was to collaterize home equity loans (they call 'em HELOC's today). All 3 of these parties threatened to take me to court. I had one call from one attorney. None went to court however.

Batting a thousand so far. without steriods.

 

[Andrew Mcgrath]

Originally posted by Mike Garrett@ RAA,Jun 7 2005, 10:31 AM
the best CYA is not doing them!

Exactly! We stopped offering them last year and nobody seems to mind. A 2055 is just bad business.